Valuation Risk for Goodwill and In-Process R&D Related to the Bolt Medical Acquisition
First written in FY2023. 1 of 6 entries say "Restated". Latest entry: FY2026.
Medikit moved to the "Worse" side of this theme in 2026.
The whole theme swung hardest in 2026: 3 of 10 companies on the "Worse" side.
0 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「No impairment loss has been recognised for the goodwill and technology assets for which indications of impairment were identified, because the total undiscounted future cash flows exceeded their carrying amounts.」
For the goodwill and technology assets associated with the Bolt Medical acquisition, the company determined that there were indications of impairment during the current fiscal year, but did not recognise an impairment loss because undiscounted future cash flows exceeded their carrying amounts. - FY2025RestatedAnnual report
「There are no indications of impairment of goodwill or technology assets.」
Goodwill associated with the Bolt Medical acquisition was ¥2,120.211 million and technology assets were ¥1,071 million, with amortisation continuing. The company reconfirms the risk that reviews of the plan, market share and technological advantage could affect valuation, and that there were no indications of impairment during the current fiscal year. - FY2025-H1Decrease in goodwill balance and continued amortisationAnnual report
「Goodwill 2,337,669 2,228,940 … Goodwill amortisation 121,903 108,728」
The goodwill balance decreased from ¥2,337.669 million at the end of the previous consolidated fiscal year to ¥2,228.940 million at the end of the interim period, and ¥108.728 million was amortised during the interim consolidated period of the current fiscal year. - FY2024-Q3Increase in goodwill balance and progress of amortisationAnnual report
「Goodwill 1,935,896 2,392,034 … Goodwill amortisation － 176,268」
Goodwill related to the Bolt Medical acquisition increased from ¥1,935.896 million at the end of the previous fiscal year to ¥2,392.034 million at the end of the third quarter, and ¥176.268 million of goodwill was amortised during the cumulative third-quarter period of the current fiscal year. - FY2024-Q2Increase in goodwill following the finalisation of contingent considerationAnnual report
「Accounting treatment of contingent consideration stipulated in the business combination agreement For the business combination with Bolt Medical Co., Ltd. conducted on 26 December 2022, payment of contingent consideration was finalised during the second quarter of the current consolidated fiscal year. As the payment of contingent consideration was finalised, the consideration paid was treated as having arisen at the time of acquisition, with the acquisition cost recognised as additional goodwill. 1. Additional acquisition cost (amount of goodwill recognised) ¥632.406 million 2. Amortisation of additionally recognised goodwill ¥39.525 million 3. Amortisation method and period Straight-line amortisation over 12 years」
Payment of contingent consideration related to the Bolt Medical acquisition was finalised, and an additional ¥632.406 million of goodwill was recognised. The additional goodwill is being amortised on a straight-line basis over 12 years, with amortisation of ¥39.525 million recorded for the cumulative period of the current fiscal year. - FY2023First statedAnnual report
「Amounts recorded in the consolidated financial statements for the current consolidated fiscal year Goodwill ¥1,935.896 million Other intangible assets ¥1,080 million …The business plan used to calculate the equity value includes key assumptions such as the projected growth rate in the number of procedures using products under development by Bolt Medical, projected market share and the discount rate. …If events occur that require assumptions such as the future business plan, discount rate or period over which the technology's competitive advantage will continue to be reviewed, they could have a material impact on the valuation of intangible assets and goodwill in the consolidated financial statements for the following consolidated fiscal year.」
In connection with the acquisition of Bolt Medical, the company recorded goodwill of ¥1.94 billion and other intangible assets of ¥1.08 billion. It has newly disclosed the risk that changes in assumptions regarding procedure-volume growth, market share, the discount rate and the duration of the technology's competitive advantage could affect future valuations.